Will The Bank Of Canada Drive The Loonie Higher Today?

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1. Will The Bank Of Canada Drive The Loonie Higher Today?
A bolstered U.S. dollar caused a broader Canadian dollar sell off this week. Today, investors will be looking closely at the Bank of Canada’s monetary policy announcement. While the BoC is not expected to change interest rates, the market is pricing in an 82% chance of a rate hike in October. This means that if the Canadian central bank is serious about tightening, it will need to set the stage for a rate hike this week. If the BoC makes it clear in its monetary policy statement that rates need to increase, we could see USD/CAD drop back below 1.31.*

2. Aussie Dollar Gains On GDP Data
Aussie rose 0.3 pct from its weakest levels in over two years yesterday and was last seen trading at 0.7182 this morning as of 6:15 GMT. The U.S. dollar edged lower against a basket of currencies on Wednesday, giving the Australian dollar room to rise from its weakest levels since mid-2016 after Australia posted its best economic growth in six years. A survey released overnight showing U.S. manufacturing activity at a 14-year high in August reinforced expectations for rising U.S. interest rates, also underpinning the dollar and helped U.S. Treasury yields rise to three week highs.**

3. Debenhams Shares Tumble 4.9% On Job Cuts
Debenhams closed almost 5% lower on Tuesday after the retail conglomerate announced that it planned to swing the axe again with hundreds more roles at the chain being considered for the chop. The move will result in around 100 employees losing their jobs. The cuts come after three profits warnings since the start of the year. It is also important to note that Debenhams axed 320 management roles earlier this year and is also believed to be trimming back its international, buying and ecommerce teams.

On other stock related news, Tesla (TSLA) also closed in the red, with the stock ending Tuesday 4.2% lower after Goldman Sachs commented that there was more trouble ahead for the automotive conglomerate. The bank’s biggest concerns is Tesla’s debt-riddled balance sheet and “intensifying” competition that may erode its lead in the electric vehicle race.***

You can find and trade all of the above mentioned assets on BDSwiss Forex/CFD platforms.

*Source: Investing, Sep 04, 2018 05:02 PM ET
**Source: Reuters, Sep 04, 2018 / 4:16 AM GMT
***Source: CNN money, September 4, 2018: 3:03 PM ET

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